Counteroffers reach 20% of salary but still not enough to make accountants stay
- Average counteroffer now 20% of salary, up from 15% last year
- A third of accountants are currently being counteroffered but most wouldn’t be tempted to stay
- Counteroffers cost £529m to the UK financial services sector
Counteroffers in accountancy and finance are at their highest level in recent years, with the average offer now 20% of salary, 5% more than last year according to specialist accountancy and finance recruiter Marks Sattin. However, the financial reward accountants would demand to stay in their current role has outstripped this rise, increasing from 20% to 23% in the same period.*
A third of resigning accountants are currently being offered pay rises to convince them to stay, also an increase from the one in four seen last year and the one in eight in 2011. This is due, in part, to a rise in demand for the best talent, but also because more accountants are seeking new roles, with 76% currently considering a move compared with 68% last year.
Despite the rise in counteroffers, one in five accountants said no amount of money would make them stay and a further two in five said they would require more than the average offer of 20% to change their mind.
Dave Way, Managing Director of Marks Sattin said,
“Employers are extremely eager to hold on to talented staff and counteroffers are the most obvious staff retention tool when faced with a unwanted resignation. While offering money to resigning employees can be a quick fix, for many accountants this isn’t the answer to their concerns with their current employer. The fact that the required level of counteroffer continues to grow, suggests it is not a long term solution to staff attrition”
The total cost of counteroffers to the UK financial services sector is estimated to be around £569m, with an average offer of £13,290 and almost 43,000 financial services workers being counteroffered.** However, just 1% of HR professionals rank counteroffers as one of the most effective measures of talent retention, suggesting a large proportion of this money is being wasted.***
Among accountants, the most important reason people left their last job is career development or a new challenge with 44% citing this – something a counteroffer does not address. Twenty four per cent of people cited purely financial reasons – a fall of 4% since last year.****
Dave Way said,
“UK firms are spending a huge amount on counteroffers – often expenditure that is unplanned and not budgeted for. However, they are rarely effective and rarely scratch the itch of employees looking to leave for career development reasons. It’s clear from the candidates we track, that those who are successfully counteroffered ultimately leave their employer in the short to medium term anyhow, and for accountants, that means under 12 months. Keeping disengaged talent in house that bit longer may buy an employer time on a critical project, but at what cost to staff morale and effective delivery of project work. Counteroffers can also add to instability as employees think they can secure a pay rise just by handing in their notice. In the long run, it costs far less to let resigning employees go and secure ambitious talent from elsewhere.”
*Based on poll of 760 accountants conducted in February 2014
** Based on 1.1m financial services workers in the UK (Financial Services Contribution to the UK Economy, House of Commons Library), with 11.8% staff turnover (CIPD Resourcing and Talent Plannning Report 2013), 33% of whom are being counteroffered (Marks Sattin) and based on an average counteroffer of 20% of salary (£13,291).
***CIPD Resourcing and Talent Planning Report 2013
****Marks Sattin Salary Survey 2014
Signup to receive the latest discipline specific articles
Related articles
Teaser
GovernanceContent Type
Fintech
18/04/24
Summary
The role of risk and compliance in financial services As a sizeable, growing portion of the financial services sector, risk and compliance play a vital role in ensuring that firms conduct busine
by
David Clamp
Teaser
Executive SearchContent Type
General
18/04/24
Summary
Private equity (PE) is a growing industry that has always attracted ambitious top talent due to its high risk/high gain capital investment. Pre-covid, we saw the global private equity industry b
by
Tracey Alper
Teaser
Commerce & IndustryContent Type
General
18/04/24
Summary
What is financial contracting? Financial contracting refers to the practice of hiring finance professionals on a contractual basis to fulfil specific roles or projects within an orga
by
Kelvin Murphy
Related jobs
Salary:
£65,000 - £75,000 per annum
Location:
Alfreton, Derbyshire
Industry
Consumer & Retail
Manufacturing
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£70,000 - £80,000
Job Discipline
Qualified Finance
Contract Type:
Permanent
Description
Marks Sattin are working with a fantastic PE Backed FMCG Organisation on the Derbyshire / Nottinghamshire border to recruit a Head of FP&A.
Reference
BBBH179456
Expiry Date
01/01/01
Author
Anthony MillsAuthor
Anthony MillsSalary:
£70,000 - £80,000 per annum
Location:
Bournemouth, Dorset
Industry
Technology
Qualification
None specified
Market
Commerce & Industry
Salary
£80,000 - £100,000
Job Discipline
IT Analysis
Contract Type:
Permanent
Description
IT Requirements Engineer
Reference
BBBH180099
Expiry Date
01/01/01
Author
Ghazal MayahiAuthor
Ghazal MayahiSalary:
£36 - £41.5 per hour
Location:
Manchester, Greater Manchester
Industry
Healthcare
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£250 - £350
Job Discipline
Qualified Finance
Contract Type:
Contract
Description
Senior Transactional Lead | Manchester | Up to £41.50 per hour | 3 month contract | Hybrid
Reference
BBBH180097
Expiry Date
01/01/01
Author
Jamie MillerAuthor
Jamie MillerSalary:
Up to £50,000 per annum
Location:
City of London, London
Industry
Consumer & Retail
Qualification
None specified
Market
Commerce & Industry
Salary
£50,000 - £60,000
Job Discipline
Cloud & Infrastructure
Contract Type:
Permanent
Description
IT Support Manager
Reference
BBBH180096
Expiry Date
01/01/01
Author
Alex SimmonsAuthor
Alex SimmonsSalary:
Up to £50,000 per annum
Location:
Manchester, Greater Manchester
Industry
Energy, Resources and Industrial
Qualification
Finalist / Newly qualified
Market
Commerce & Industry
Salary
£50,000 - £60,000
Job Discipline
Qualified Finance
Part Qualified & Transactional Finance
Newly Qualified Finance
Contract Type:
Permanent
Description
Our client, a market leading Technology business headquartered in Manchester City Centre are currently searching for an ambitious Commercial Finance Analyst to join their team.
Reference
BBBH180095
Expiry Date
01/01/01
Author
Tany YunosAuthor
Tany YunosSalary:
€45,000 - €60,000 per annum
Location:
Utrecht
Industry
Real Estate
Qualification
Part qualified
Market
Commerce & Industry
Salary
£50,000 - £60,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Permanent
Description
Onze klant houd zich bezig met innovatieve oplossingen voor de ontwikkeling van duurzame steden en samenlevingen. Hier speel jij een cruciale rol in het beheer van diverse vastgoedportefeuilles.
Reference
BBBH179228
Expiry Date
01/01/01
Author
Guido BuwaldaAuthor
Guido BuwaldaSalary:
€45,000 - €65,000 per annum
Location:
Utrecht
Industry
Private Equity
Qualification
Part qualified
Market
Commerce & Industry
Salary
£50,000 - £60,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Permanent
Description
Momenteel zijn wij voor een private equity firm in Utrecht op zoek naar een Controller. Zij investeren in (potentiële) marktleiders - tot ca 500 mln omzet - met als doel om de waarde te verhogen
Reference
BBBH179535
Expiry Date
01/01/01
Author
Guido BuwaldaAuthor
Guido BuwaldaSalary:
£100,000 - £120,000 per annum
Location:
Bolton, Greater Manchester
Industry
Consumer & Retail
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£100,000 - £125,000
Job Discipline
Qualified Finance
Contract Type:
Permanent
Description
Exciting Finance Director role paying between £100,000 and £120,000 working for a PE backed retail and distribution business based in Bolton.
Reference
BBBH180076
Expiry Date
01/01/01
Author
Nathan JonesAuthor
Nathan JonesSalary:
£280 - £305 per day
Location:
Leeds, West Yorkshire
Industry
Business Services
Qualification
Fully qualified
Market
Professional Services
Salary
£250 - £350
Job Discipline
Qualified Finance
Contract Type:
Contract
Description
You will be working with the business for a period of 9 months + and will be required to work in the office 2/3 days per week.
Reference
NH - 180090
Expiry Date
01/01/01
Author
Niamh HellewellAuthor
Niamh HellewellSalary:
£180 - £200 per day + + Hybrid Working (2 days WFH)
Location:
London
Industry
Investment Management
Qualification
None specified
Market
Financial Services
Salary
£150 - £250
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Contract
Description
We are recruiting for an Interim Accounts Payable to join a Global Investment Firm. The position is in London on a contract basis.
Reference
BBBH180087
Expiry Date
01/01/01
Author
Deem NaPattaloongAuthor
Deem NaPattaloong